Internet Capital Group Q4 2008 Earnings Call Transcript

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2009-02-25 10:27:14.0

Tags: EBITDA, Internet Capital Group, Call Transcript, Visibility, Earnings, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from the line of Jeff Van Rhee of Craig-Hallum. Please proceed.

Jeff Van Rhee - Craig-Hallum

Good morning everyone, great results. Certainly, you guys ought to be pretty satisfied; this looks really good. A number of questions for you, if you would. Just to follow up on how Kirk just wrapped things up in terms of the '09 view. Understanding everything he said, there is limited visibility and a lot of people have opted for one quarter as opposed to a full year's guidance. Can you talk maybe qualitatively in terms of what the risks and opportunities are in the revenue picture and try to narrow those expectations somewhat? You said you think you'd grow. Could you possibly narrow that down to 0 to 10%? I mean give us a sense of a range and what the biggest variables are in that picture given a lot of these companies are on demand and have pretty reasonable backlogs for fairly good visibility?

Walter Buckley, III

Yes, Jeff, I think most of our companies we do have good visibility into and I think we'll see solid growth from a majority of our companies from what we can see today. And we have got one or two -- one specifically that's really a license software business where you just don't have the visibility you would like to have to forecast out four quarters. And so that's really the biggest -- the issue we are facing as we think about 2009. That said, I think we'll see solid growth and, as importantly, increasing EBITDA.

Jeff Van Rhee - Craig-Hallum

If you exclude the one license company, do you think it's reasonable as a starting base on the others as a group might be able to put up double-digit growth?

Walter Buckley, III

Yes.

Jeff Van Rhee - Craig-Hallum

Okay. And then on the EBITDA, you did comment that a number the companies intend to lower expenses in the forward year. Do you have any semblance of what you think is a number of the eight that will be EBITDA positive for '09, what your expectation is there?

Kirk Morgan

Jeff, we are not putting that line in the sand at this point in time. I mean we are certainly focused in driving all of the companies to get there eventually. I think a number of those will be positive in 2009 if the current macroeconomic environment stands to where we think it will be. But in terms of a specific number at this point in time, we are not ready to do that.

 

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